Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1887-01-21
THE STATE DEBT.
AUDITOR RUFFIN SHOWS THAT
THE BONDHOLDERs HAVE MADE
NO NEW PROPOSITION FOR A
SETTLEMENT.

Sci ILIMIN
Editor Of the Wing:
To the oft.repeated assertion OF
their agents that the British bond
holders had made a proposition to
settle their claims upon basis
differing from the Rddleberger
bill, | have already opposed a
steady denial. And now it appears
under the hand OF their selected
agent in London that they never
madeany proposition at all. Messrs.
Martin e. Co., 6S Lombard street,
London, +. c., request all bond
holders to lodge their bonds with
them on or after the 10Th instant
presumed to be December.
The reason for this request IS
stated as follows in a paper which
| extract from a late circular OF D..
A. Hambleton & Co.:
"The objects of the deposits are
First. To authorize the Council OF
Foreign Bondbolders, in coniunc-
ton with the Virginia Bondhold'
ers' Committee, TO act generally in
the name of the bOndholders, and
especially for the purpose of ylndl-
eating the right, established by
decision of the Supreme Court OF
the United States, to the use OF con
pons in payment of taxes. Second
". To authorize them TO negotiate
an arrangement with the state,
should the opportunity olier.-
Thirdly. To provide funds to carry
ont the preceding objects and sup
ply the means for continuing the
representation of the bondholders
in the FUTURE
Here are three purposes; Inc
FIRST, TO establish a right which Is
not disputed the second, to give
them authority, which now they
have motor they would not have
asked for it-namely, the night to
negotiate with the state, which, not
having themselves, they never au.
thorized any one else to assume (;
and the third, to create a corrup-
ton fund, which it was known they
have had before, and is believed
they have exhausted.
The amount they assess, or at
tempt to assess, Is | per cent on
their consols, and | per cent. on
their 10.40's. But 1t Is very doubt
ful if all the bondholders will come
IN, Tor they will have seen that the
only effect of their sending an agent
here to cooperate with Mr. ROva1,
has been to deepen the irritation
he found here, and to intensity the
determination of the people. what
else could they have expected,
when that agent has conspired with
Mr.. Royal to put the state of Vlr'
GINA into practical recelvership, by
an usurping decree Of the Federal
Court, with the alternative of stop
ping the government if the states
officers shall deeliRe to become the
tools of Judge Bond.
Many of our people wish this
very condition Of things to be
brought about, because that will
settle the debt by repudiatlon.-
There are thousands in the state
now who deny the moral obligation
of the coupon and ten-forty debts;
who only admit it because a debt is
admitted by the State Constitution,
and who will deny 1T the moment
the State Constitution denies 1t. il
the conspiracy Of Mr.. Royal and
the bondholders' agent, Cooper,
succeeds, the thousands will be-
come tens of thousands, the senti-
mentalists will be blown away like
chat, and the principal of the debt
will be wiped out by constitution
al amendment as soon as two Leg
islatures and a popular vote can be
had on it-COde of Virginia, p. 100
which will be in about eighteen
months from this writing. AS to
the coupons, there are modes yet
untried within the ruling of the
Federal Court that will enable the
state to have juries in every case
aud indemnify every damaged
treasurer.
at is not proposed" says the cir.
cular quoted above, chat the de.
posit should be continued beyond
3lst December, 1889, long before
which date the committee hope that
the state will have seen the policy
of coming to satisfactory arrange
ment with the bOndholders."
Ahal beyond 1889 you say, and
why that particular period of time !
Because they have been notified
that the state convention will then
be in session, as appears by the fol
lowing extract from the warning
given them by me in the London
Financial NeGs of August 2}th,
1886. See if it was not that which
makes them limit the deposit to
1889?
"That convention will assemble
in 1889, and will give Virginia a
capacity to relieve herself OF the
bondhoIders' demand, at least to
the extent fixed by the Riddleber'
ger Act, aad perhaps to a greater
The doctrine of a states immunity
from suit insisted on by the very
Judges Sho have violated 1t in the
case of Virginia's officers (POindex'
ter rs. Greenhow, U. s. Report,
114-323.) 1t has never been ques'
toned that a state can repudlate
her debt; there is no power to pre-
vent it, certainly as to the prlncl'
nal ; none under ordinary clreum'
stances, as to the interest. And by
fOrbidding her officers to receive
the peculiar coupons which are the
subject of the present dispute ln
Virginia, the state may ascertain
how much power a Federal court
has to prevent the people in SOW
ereign convention from asserting
the repealability Of an eTecutory
contract.
Assuming that the convention OF
| l8S9J9O will forbid the payment OF
funding of the cOnsol and ten'forty
bonds, say, as of date July l, 1889
what will happen2 The tax'recely'
able consols coupon bonds (Sl3,'
Ol9 1901, fall due July !, lgV3y the
ten.forties (S7,iS5,O OO), January J.
1919.
Unless convoked Immediately
which is not usual, conventions to
amend constitutions are held once
in about twenty years. This viii